rp-25-11.pdf

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Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2025-11

SECTION 1. PURPOSE

This revenue procedure provides the process under § 48E(h) of the Internal
Revenue Code (Code)
1
to apply for an allocation of capacity limitation (Capacity
Limitation) as part of the Clean Electricity Low-income Communities Bonus Credit
Amount Program (Program) for 2025 and subsequent years. Receipt of an allocation
increases the amount of the clean electricity investment credit determined under
§ 48E(a) (§ 48E credit) for the taxable year in which the applicable facility, with which
the allocation of Capacity Limitation is associated, is placed in service. This revenue
procedure provides guidance regarding the application process, including application
review, documentation requirements, and placed in service reporting requirements.

1
Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax
Regulations (26 CFR part 1).

2

This revenue procedure also provides information on the requirements specific to the
Additional Selection Criteria (ASC) application options, including documentation
submission requirements. Additionally, this revenue procedure describes how the
Capacity Limitation will be divided across the facility categories, and information on the
placed in service reporting requirements.
SECTION 2. BACKGROUND
Section 13702 of Public Law 117–169, 136 Stat. 1818, 1921 (August 16, 2022),
commonly known as the Inflation Reduction Act of 2022 (IRA), added new § 48E(h) to
the Code. Section 48E(h) increases the amount of the § 48E credit with respect to
eligible property that is part of an applicable facility that is awarded an allocation of
Capacity Limitation as part of the Program. The amount of § 48E credit for a taxable
year is calculated by multiplying the qualified investment for such taxable year with
respect to any qualified facility placed in service during that taxable year by the
applicable percentage (as defined in § 48E(a)(2)). Section 48E(h) increases the § 48E
credit by increasing the applicable percentage used to calculate the amount of the
§ 48E credit (§ 48E(h) Increase).
Section 48E(h)(4) directs the Secretary of the Treasury or her delegate (Secretary)
to establish a program to allocate amounts of Capacity Limitation to applicable facilities.
On September 3, 2024, the Department of the Treasury (Treasury Department) and
the Internal Revenue Service (IRS) published a notice of proposed rulemaking (REG-
108920-24) under § 48E(h). Final regulations were published on January 13, 2025.
SECTION 3. APPLICABLE FACILITY
.01 In general. To be eligible to apply for and receive an allocation of Capacity

3

Limitation, and to later claim the § 48E(h) Increase, a facility must be an applicable
facility as defined under § 48E(h)(2)(A) and § 1.48E(h)-1(b). Eligibility as an applicable
facility includes the requirement under § 48E(h)(2)(A) and § 1.48E(h)-1(b)(1) and that
the facility be a qualified facility, as defined in § 48E(b)(3), and is a non-combustion and
gasification (Non-C&G Facility) that the Secretary has determined has a greenhouse
gas (GHG) emissions rate of not greater than zero.
.02 Types of Qualified Facilities. Under § 1.48E(h)-1(b)(1) and consistent with
Treasury Department and IRS guidance under §§ 45Y and 48E, the following types or
categories of qualified facilities are categorically Non-C&G Facilities with a GHG
emissions rate that is not greater than zero, and may be eligible for an allocation of
Capacity Limitation: wind (including small wind properties), hydropower (including
retrofits that add power production to non-powered dams, conduit hydropower,
hydropower using new impoundments, and hydropower using diversions such as a
penstock or channel), marine and hydrokinetic, solar (including photovoltaic and
concentrated solar power), geothermal (including flash and binary plants), nuclear
fission, fusion energy, and waste energy recovery property (WERP) that derives energy
from any of the energy sources described in this list. Under § 1.48E(h)-1(b)(1), the
types or categories of qualified facilities that are Non-C&G Facilities are determined
based on Treasury Department and IRS guidance in effect as of the opening date of
that Program year.
SECTION 4. CAPACITY LIMITATION AVAILABLE FOR ALLOCATION
.01 Annual Capacity Limitation. The amount of Capacity Limitation available for
allocation through the application process provided in this revenue procedure is limited

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to the annual Capacity Limitation of 1.8 gigawatts of direct current (DC) capacity, as
specified at § 48E(h)(4)(C), plus any unallocated Capacity Limitation carried over from
the previous Program year, as required under § 48E(h)(4)(D)(i) and (ii) (specifically for
the carryover of unallocated capacity from calendar year 2024 under § 48(e) to calendar
year 2025). If any Capacity Limitation is remaining when a Program year closes, then
that Capacity Limitation will be carried over to the next Program year as described in
section 4.06 of this revenue procedure.
.02 Distribution of Annual Capacity Limitation. As provided in § 1.48E(h)-1(g)(1), the
annual Capacity Limitation available for allocation is divided across the four facility
categories described in § 48E(h)(2)(A)(iii) and § 1.48E(h)-1(b)(2). For each Program
year, the annual Capacity Limitation of 1.8 gigawatts (as measured in DC) is distributed
across the categories as shown in Table 1.
Table 1
Category 1: Located in a Low-Income Community
Category 2: Located on Indian Land
Category 3: Qualified Low-Income Residential Building Project
Category 4: Qualified Low-Income Economic Benefit Project
600 megawatts
200 megawatts
200 megawatts
800 megawatts

.03 Category 1 sub-reservations. The reservation for Category 1 is further
subdivided for each Program year into a sub-reservation for eligible residential behind
the meter (BTM) facilities as described in §§ 1.48E(h)-1(g)(2) and 1.48E(h)-1(i)(2)(ii),
and a sub-reservation for front of the meter (FTM) facilities described in §§ 1.48E(h)-
1(g)(2) and 1.48E(h)-1(i)(2)(iii), and non-residential BTM facilities that meet the

5

requirements of §§ 1.48E(h)-1(g)(2) and 1.48E(h)-1(i)(2). The Category 1 reservation
from the annual Capacity Limitation distribution is divided into further sub-reservations
as shown in Table 2.

Table 2
Eligible Residential BTM Facilities 400 megawatts
Eligible FTM Facilities and Non-
residential BTM Facilities
200 megawatts

.04 Additional Selection Criteria Reservation. At the beginning of each application
period for a Program year, 50 percent of the Capacity Limitation in each category or
Category 1 sub-reservation is reserved for ASC applicants, as provided for under §
1.48E(h)-1(h)(1) and section 8.03(1) of this revenue procedure.
.05 Redistribution of Capacity Limitation within a Program year. If, at the close of the
application period (as described in section 5.04 of this revenue procedure and §
1.48E(h)-1(j)(4)) for a given Program year, there are undersubscribed categories or sub-
reservations, the remaining Capacity Limitation will be redistributed to the
oversubscribed categories or sub-reservations in the manner provided in § 1.48E(h)-
1(g)(3).
.06 Carryover of Unallocated Capacity Limitation. If, after redistributing Capacity
within a Program year, as described in section 4.05 of this revenue procedure, there is
remaining unallocated Capacity Limitation, that Capacity Limitation will be carried over
to the next Program year. Carried over Capacity Limitation will be equally divided,
rounded to the nearest kilowatt, and distributed across the categories as described in §

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1.48E(h)-1(g)(4). The carried over Capacity Limitation will be further equally divided
within each category as described in § 1.48E(h)-1(g)(4).
SECTION 5. GENERAL APPLICATION PROCESS
.01 In general. An applicant (described in section 6 of this revenue procedure) must
apply for an allocation of Capacity Limitation through the online applicant portal system
(Portal), at https://eco.energy.gov/licbonus. The Portal is also linked at
https://www.irs.gov/credits-deductions/low-income-communities-bonus-credit or
https://www.irs.gov/licBonusCredit (Program homepage). The application must contain
all information, documentation, and attestations specified in section 7 of this revenue
procedure. Additional guidance material and a User Guide with detailed instructions for
Portal use are linked on the Program homepage.
.02 Selection of the appropriate category or sub-reservation. In the Portal,
applicants must select an application option for a particular facility category, as
described in § 1.48E(h)-1(b)(2) (that is, Category 1 Facility, Category 2 Facility,
Category 3 Facility, or Category 4 Facility). If the applicant is applying in Category 1,
the applicant must also select the appropriate Category 1 sub-reservation described in
§ 1.48E(h)-1(i) (that is, eligible residential BTM facilities or eligible FTM facilities and
non-residential BTM facilities located in low-income communities). Additionally, eligible
applicants who plan to apply under the ASC described in § 1.48E(h)-1(h) must select
the ASC application option in each Category or Category 1 sub-reservation.
Applications will not be moved to a different facility category or Category 1 sub-
reservation. Applicants that should be considered in a different Category or Category 1
sub-reservation must withdraw the application for the option under which the applicant

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originally applied for a particular applicable facility and create a new application under
the appropriate option. If an applicant applies under two ASC criteria and it is
determined that the application does not meet one of the two claimed ASC types of
criteria, that application will be updated and processed as satisfying one ASC criterion
in the same Category or Category 1 sub-reservation. Additionally, if an applicant
applies under either one or two ASC criteria, and it is determined that the application
does not meet any claimed ASC criteria, that application will be moved to non-ASC in
the same Category or Category 1 sub-reservation.
.03 One application. Applicants may only submit one application per applicable
facility per Program year. For an applicable facility that has integrated operations with
one or more other qualified facilities, as described in § 1.48E-1(b)(3)(iv), and is still
eligible for the Program, applicants may only submit one application for that applicable
facility (including any other qualified facilities with integrated operations). If, after
submitting an application for an applicable facility, the applicant decides that it would
rather have the facility considered for an allocation under a different facility category or
Category 1 sub-reservation, or under an ASC criterion if previously not submitted as
ASC, the applicant must withdraw the first application and submit a new application
under the intended facility category or Category 1 sub-reservation. If it is identified that
an applicant has submitted more than one application for a single applicable facility (and
the applicant has not withdrawn the previously submitted application(s)), any application
submitted after the first submitted application will be considered a duplicate application
and will be treated as withdrawn.
.04 Application period. For Program year 2025, the application period will open on

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January 16, 2025 at 9:00 AM Eastern Standard Time (EST), and close on the first
Friday in August 2025 at 11:59 PM EST. Beginning for Program year 2026, and for
each subsequent year of the Program, the application period will open the first Monday
in February at 9:00 AM EST and close the first Friday in August at 11:59 PM EST. See
section 8.02(1) of this revenue procedure for information on the application review
process and the initial 30-day period for application submission.
SECTION 6. APPLICANT
.01 In general. The owner of the applicable facility is the person who must apply for
an allocation of Capacity Limitation. If the facility is determined to be eligible for an
allocation, and there is Capacity Limitation available to allocate, the owner of the
applicable facility is the recipient of the allocation of Capacity Limitation. In addition to
being the owner of the applicable facility, the applicant should be the taxpayer that
intends to claim the underlying § 48E credit to which the § 48E(h) Increase will be
applied, provided facility ownership is not transferred after allocation (as discussed in
section 12 of this revenue procedure).
.02 Disregarded entities. A disregarded entity cannot be an applicant. If an
applicable facility is owned by an entity that is disregarded as separate from its owner
for federal income tax purposes, the owner of the disregarded entity, also known as the
regarded entity, is the owner of the facility and must be the applicant. If a disregarded
entity improperly registers as another entity type and applies as a regarded entity, then
any applications submitted by that entity are invalid. The IRS relies on the information
the taxpayer submits at registration as the applicant. If the IRS allocates an amount of
Capacity Limitation to an applicant, and later discovers that the applicant is a
disregarded entity, the IRS will rescind the allocation of Capacity Limitation. This

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section also applies to sole proprietorships where the disregarded entity is owned by a
single person.
.03 Tribal Enterprise. For entities wholly owned and chartered under Tribal law and
corporations incorporated under the authority of either section 17 of the Indian
Reorganization Act of 1934, 25 U.S.C. 5124 or section 3 of the Oklahoma Indian
Welfare Act, 25 U.S.C. 5203, an application may be made as a Tribal Enterprise.
.04 Partnerships and S corporations. If an applicable facility is owned by a
partnership or S corporation, then the partnership or S corporation, and not its partners
or shareholders, is the owner of the facility and is the applicant. For unincorporated
organizations that have made or will make an election under § 761(a) to be excluded
from the application of subchapter K of chapter 1, the organization, and not its
members, is still the applicant that must register and apply for the allocation.
SECTION 7. APPLICATION
.01 In general. Applications for the Program can only be completed and submitted
through the Portal. Applicants must register in the Portal b efore they can begin the
application process.
.02 Registration.
(1) An individual who is legally authorized to bind the applicant entity for federal
income tax purposes must first create a login.gov account before the individual can
access and register the applicant in the Portal. After a login.gov account has been
created, the user can then register the taxpayer as the applicant in the Portal. Each
applicant that intends to submit applications must separately register for the Portal. The
individual registering the applicant must create a separate login.gov account for each

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applicant on behalf of which the individual will be completing and submitting an
application or applications. See the Applicant User Guide, which is linked on the
Program Homepage, for more information on creating a login.gov account and for
detailed instructions on the Portal Registration requirements, as updated.
(2) The user that created the login.gov account and that is registering the applicant
must enter their name and email address in the Organization Contact section. This
person is completing the application as the applicant and, therefore, must be legally
authorized to bind the applicant. Third-party representatives, which includes general
employees, are not qualified to register or apply for an applicant.
(3) The “organization” on the registration page is the applicant. The information
provided at registration for the “organization’s name” and “taxpayer identification
number (TIN)” must be the applicant’s information.
(4) The applicant’s federal tax classification must be provided under “organization
type.” A Limited Liability Company (LLC) is a business structure allowed by state
statute and is not a federal tax classification. When registering an LLC, determine the
correct federal tax classification of the LLC before proceeding. An LLC that is a
disregarded entity cannot be an applicant.
(5) Registrants must attest to the following attestation: “Under penalty of perjury, I
attest that the applicant is not a disregarded entity as described in Treas. Reg. §§
301.7701-2(a) and 301.7701-3. I attest that the applicant is either a per se corporation
as defined in § 301.7701-2(b) or, if the entity is an eligible entity as defined in
§301.7701-3(a), it has either (i) more than one owner, partner, member, or shareholder
or (ii) filed an election to be classified as an association taxable as a corporation. I

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further attest that the applicant has not filed an election to be classified as a qualified
REIT subsidiary (within the meaning of § 856(i)(2)), or a qualified subchapter S
subsidiary (within the meaning of § 1361(b)(3)(B)).” This attestation is included in the
Portal, and by proceeding with the registration process and submitting this attestation,
the registrant will be treated as having signed the attestation.
.03 Application Submission. The applicant must submit their application, including
any required information, documentation, and attestations required by section 7 of this
revenue procedure, under penalties of perjury. The person completing and submitting
the application must have personal knowledge of the facts related to the application and
be a person who is legally authorized to (1) bind the applicant entity for federal income
tax purposes, including providing, under penalties of perjury, the attestations under
sections 7 and 10.02 of this revenue procedure; (2) communicate with reviewers about
the application prior to and after submission of the application; and (3) receive
notifications, letters, and other communications from reviewers and the IRS. For
example, an application may be authorized by an officer of a corporation, a general
partner of a state law partnership, a trustee on behalf of a trust, or the proprietor in the
case of a sole proprietorship. The person submitting the application must attest,
through the Portal, that they have the requisite authority to legally bind the applicant
with respect to federal income tax matters. This person must also first register in the
Portal as explained in section 7.02(1).
.04 Applicant Information. The application must include the following identifying
information of the applicant.
(1) The name of the applicant;

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(2) The unique federal taxpayer identification number for the applicant. Unless a
transfer request is reviewed and approved by the IRS or the unincorporated
organization has made a § 761(a) election to be excluded from the application of
subchapter K of chapter 1 (see section 13 of this revenue procedure), the TIN of the
applicant must match the TIN of the taxpayer that will claim the credit under § 48E(a) in
addition to the applicable percentage increase under § 48E(h), or, in the case of a
partnership or S corporation, the partnership or S corporation that owns the facility when
it is placed in service;
(3) The applicant’s address;
(4) If the applicant is a subsidiary corporation of a consolidated group filing a
consolidated federal income tax return, the legal name and federal taxpayer
identification number of the parent corporation of the consolidated group; and
(5) Any other information required by publicly available written procedures on the
Program Homepage.
.05 Applicable Facility Information.
(1) In general. For any applicable facility described in section 3.01 of this revenue
procedure, the application requires the applicant to provide the information described in
section 7.05(2) and 7.05(3) of this revenue procedure, and any other information
required by publicly available written procedures provided on the Program Homepage.
(2) Applicable facility maximum net output and nameplate capacity.
(a) Applicable facility with nameplate capacity measured in alternating current.
Applicants seeking an allocation for an applicable facility with a nameplate capacity
measured in alternating current (AC) must report the expected maximum net output of

13

the facility in AC. If an applicable facility has integrated operations with one or more
other qualified facilities and is still eligible for the Program, then the sum of the
nameplate capacity of the applicable facility and each other qualified facility must be
reported, consistent with § 1.48E(h)-1(b)(3)(iv). Applicable facilities with a nameplate
capacity measured in AC that are selected for an allocation will be awarded an amount
of Capacity Limitation in DC that is equal to the facility’s reported nameplate capacity in
AC.
(b) Applicable facility with nameplate capacity measured in direct current.
Applicants seeking an allocation for an applicable facility with a nameplate capacity
measured in DC (such as solar facilities) must report the nameplate capacity of the
facility in DC and the expected maximum net output of the facility as measured in AC, to
ensure the facility meets the less than 5 megawatts (MW) (as measured in AC)
requirement under § 48E(h)(2)(A)(ii). If an applicable facility has integrated operations
with one or more other qualified facilities and is still eligible for the Program, then the
sum of the nameplate capacity of the applicable facility and each other qualified facility
must be reported, consistent with § 1.48E(h)-1(b)(3)(iv). Applicable facilities with a
nameplate capacity measured in DC that are selected for an allocation will be awarded
an amount of Capacity Limitation in DC that is equal to the facility’s reported nameplate
capacity in DC.
(3) Facility location. Applicants must provide the location of the applicable facility,
including street address (if applicable) and coordinates (latitude and longitude).
Applicants should provide a single address and a single set of coordinates.
.06 Documentation.

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(1) In general. Applicants must submit the documentation specified in sections
7.06(2) and 7.06(3) of this revenue procedure with an application for an allocation of
Capacity Limitation. An application is not complete and may be rejected if any required
documentation is not included.
(2) Facility documentation for all categories. As specified in Table 3, the following
documents are required for each applicable facility for which an application is submitted:
Table 3

2
As defined in § 1.48E(h)-1(i)(2)(iii), for the purposes of the Program, an applicable facility is front of the
meter (FTM) if it is directly connected to a grid and its primary purpose is to provide electricity to one or
more offsite locations via such grid or utility meters with which it does not have an electrical connection;
alternatively, FTM is defined as a facility that is not BTM. For the purposes of Category 4, an applicable
facility is also FTM if 50 percent or more of its electricity generation on an annual basis is physically
exported to the broader electricity grid.
3
As defined in § 1.48E(h)-1(i)(2)(i), an applicable facility is behind the meter (BTM) if (1) it is connected
with an electrical connection between the facility and the panelboard or sub-panelboard of the site where
the facility is located, (2) it is to be connected on the customer side of a utility service meter before it
connects to a distribution or transmission system (that is, before it connects to the electricity grid), and its
primary purpose is to provide electricity to the utility customer of the site where the facility is located. This
definition also includes systems not connected to a grid and that may not have a utility service meter and
that have a primary purpose of serving the electricity demand of the owner of the site where the system is
located.
4
If the applicant is not a party named in the contract, the applicant must provide with the applicable
contract a statement explaining why the applicant is not named in the contract and the relationship
between the appropriate entity named in the contract and the applicant. The applicant must be the owner
of the applicable facility to be eligible to apply for an allocation of Capacity Limitation.

Document Requirement FTM
2
BTM
3

<= 1 MW AC
BTM
> 1 MW AC
One of the following documents, in its entirety,
inclusive of any amendments, appendices,
consumer disclosures, and schedules thereto,
executed by each party
4
on or before the date of
application submission:
1) If the applicant will not execute a lease or a
power purchase agreement (PPA) with respect to
the facility, an executed contract for the installation
of the facility owned by the applicant (for example,
No Yes Yes

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an engineering, procurement, and construction
contract). For purposes of meeting this
requirement, if the applicant will self-install the
facility, the applicant must submit a contract to
purchase the energy generation equipment.
2) If the applicant will execute a lease with respect
to the facility, an executed contract to lease the
facility between the applicant (as the lessor) and
the lessee.
3) If the applicant will execute a PPA with respect
to the facility, an executed power purchase
agreement for the generation by the facility
between the applicant and the offtaker of the
electricity generated.
A copy of the final, executed interconnection
agreement, if applicable (see below), executed by
each party on or before the date of application
submission.
If the facility is located in a market where the
interconnection agreement cannot be
countersigned by the interconnecting utility prior to
completion of construction or interconnection of the
facility, the applicant must provide:
1) A copy of the submitted interconnection
agreement with proof of submission or offer signed
by the applicant (or its agent),
2) a copy of the final completed interconnection
screen/study, and
3) either a conditional approval letter that identifies
Yes No Yes

16

the specific facility from the interconnecting utility
or an affidavit
5
stating that, based on the
interconnecting utility’s guidance, the facility’s
interconnection agreement cannot be
countersigned by the interconnecting utility and
executed until after construction of the facility.

If an interconnection agreement is not applicable to
the facility (for example, due to utility ownership),
the interconnection agreement requirement is
satisfied by a final written decision from a Public
Utility Commission, cooperative board, or other
governing body with sufficient authority that
financially authorizes the facility.
If the facility is under a utility jurisdiction that does
not require a study or additional approvals after
interconnection application submission, then the
applicant must provide proof of interconnection
application submission and either public utility
guidance or an executed letter from the utility that
states that the applicable facility has completed all
interconnection requirements.

If the facility is on land under the regulatory
authority of a Tribe (including its political
subdivisions, agencies, or instrumentalities, and
Tribal Enterprises), Alaska Native Corporation, or
the Department of Hawaiian Homelands, the
Yes No Yes

17

applicant must provide:
1) a Notice to Proceed issued by the applicable
governing authority within the relevant Tribe,
Alaska Native Corporation, of the Department of
Hawaiian Home Lands, and
2) a copy of the submitted interconnection
screen/study or a notice of intent to enter into a
PPA.

For 1), the Notice to Proceed
issued by the
relevant authority should be a notice, letter, or
resolution that clearly states the following
information:
1) the applicant (or taxpayer) name,
2) energy facility location (address),
3) a description of the energy facility,
4) timeline of facility development, and
5) clear approval from the relevant regulatory
authority that the facility has been evaluated and is
ready to proceed.

For 2), if an interconnection agreement is not
applicable to the facility (for example, due to utility
ownership), the interconnection agreement
requirement is satisfied by the Notice to Proceed
issued under the regulatory authority of a Tribe
(including its political subdivisions, agencies, or
instrumentalities, and Tribal Enterprises), Alaska
Native Corporation, or the Department of Hawaiian

18

(3) Category 3 facility specific documentation. Applicants applying for an allocation
under Category 3 must provide documentation demonstrating that the applicable facility
will be installed on an eligible residential rental building and a Benefits Sharing
Statement as described under § 1.48E(h)-1(e)(6)(i).
(a) Eligible Housing Programs. Section 48E(h)(2)(B)(i) requires a facility to be
installed on a residential rental building that participates in a covered housing program
(as defined in section 41411(a) of the Violence Against Women Act of 1994 (34 U.S.C.
12491(a)(3)), a housing assistance program administered by the Department of
Agriculture under title V of the Housing Act of 1949, a housing program administered by
a tribally designated housing entity (as defined in section 4(22) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(22)), or any
other affordable housing program identified by the Department of the Treasury. The
eligible residential rental building (and not just its tenants) must participate in an eligible
housing program. The Treasury Department and the IRS, in consultation with other
Federal agencies, developed a list of Federal housing programs and policies that meet
the requirements in § 48(e)(2)(B)(i):
• Department of Housing and Urban Development (HUD) section 202 Supportive
Housing for the Elderly, including the direct loan program under section 202.

• HUD section 811 Supportive Housing for Persons with Disabilities.
• HUD Housing Opportunities for Persons With AIDS (HOPWA) program.
• HUD homeless programs under title IV of the McKinney-Vento Homeless
Assistance Act, including the Emergency Solutions Grants program, the
Continuum of Care program, and the Rural Housing Stability Assistance
program.
• HUD HOME Investment Partnerships (HOME) program.
• Federal Housing Administration (FHA) mortgage insurance under section
221(d)(3) subsidized with a below-market interest rate (BMIR) prescribed in the
proviso of section 221(d)(5) of the National Housing Act.
Homelands

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• HUD's section 236 interest rate reduction payments.
• HUD Public Housing assisted under section 9 of the United States Housing Act
of 1937.
• HUD project-based rental assistance and project-based vouchers under
section 8 of the United States Housing Act of 1937.
• HUD section 8 Moderate Rehabilitation Program.
• HUD section 8 Moderate Rehabilitation Single Room Occupancy Program for
Homeless Individuals.
• USDA section 515 Rural Rental Housing.
• USDA section 514/516 Farm Labor Housing.
• USDA section 538 Guaranteed Rural Rental Housing.
• USDA section 533 Housing Preservation Grant Program.
• Treasury/IRS Low-Income Housing Credit under § 42.
• HUD National Housing Trust Fund.
• Veterans Administration (VA) Comprehensive Service Programs for Homeless
Veterans.
• VA grant program for homeless veterans with special needs.
• VA financial assistance for supportive services for very low-income veteran
families in permanent housing.
• Department of Justice transitional housing assistance grants for victims of
domestic violence, dating violence, sexual assault, or stalking.
• Housing assistance programs administered by the USDA under title V of the
Housing Act of 1949.

• Housing programs administered by an Indian Tribe or a Tribally designated
housing entity (as defined in section 4(22) of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(22)).
• Housing programs administered by the Department of Hawaiian Home Lands
(DHHL) as defined in Title VIII of the Native American Housing Assistance and
Self-Determination Act of 1996 (24 CFR 1006.10), Hawaiian Homestead
Associations (HHA) as defined in 43 CFR 48.6, and DHHL or HHA lands
administered by Native Hawaiian Organizations as defined in 13 CFR 124.3.

(b) Category 3 facility draft Benefits Sharing Statement. Applicants to Category
3 must create and submit a draft Benefits Sharing Statement that includes the
information described under § 1.48E(h)-1(e)(6). This draft Benefits Sharing Statement
must include a calculation of the facility’s gross financial value, a calculation of the
facility’s net financial value, a calculation of the financial value required to be
distributed to building occupants, a description of the means through which the
required financial value will be distributed to building occupants, and which entity will

20

be responsible for the distribution of benefits to the occupants. A Benefits Sharing
Statement template is linked on the Program homepage. A final Benefits Sharing
Statement must be submitted as part of placed in service reporting as described under
section 10 of this revenue procedure.
(4) Category 4 facility draft Demonstration of Financial Benefits statement.
Applicants applying for an allocation under Category 4 must provide a draft
Demonstration of Financial Benefits statement (as defined in § 1.48E(h)-1(f)(3))
demonstrating that the financial benefits requirements will be met based on the
expected annual energy produced by the as-built facility at placed in service and
during the recapture period under § 48E(h)(5) and § 1.48E(h)-1(n). This draft
Demonstration of Financial Benefits statement must include a calculation of the total
financial benefits of annual electricity production, the percent of the total financial
benefits provided and/or assigned to Qualifying Households, the bill credit discount
rate method used (with cost to participate or no or nominal cost of participation), a
calculation of the bill credit discount rate, and a description of the means of distributing
the required benefits to Qualifying Households. A final statement must be submitted
as part of placed in service reporting as described under section 10 of this revenue
procedure. The documentation described under § 1.48E(h)-1(f)(3)(vi) to demonstrate
that the facility is enrolled in a utility tariff, program, or other arrangement used to
distribute financial benefits to Qualifying Household is not required at application. This
documentation will be submitted as part of the final Demonstration of Financial
Benefits statement as part of placed in service reporting. An example draft
Demonstration of Financial Benefits statement is linked on the Program homepage.

21

.07 Attestations. All applicants must make all the required attestations in Table 4 of
this revenue procedure. The attestations in Table 4 are included as part of the
application in the Portal. These attestations will appear at the end of each application,
prior to submission. An applicant will be unable to submit their application if any
required attestations are not completed. The person who registered the applicant and
who is completing the application as the applicant, will be deemed to have signed the
attestations upon submitting the application. If this person is not legally authorized to
bind the applicant, as explained in section 7.03, and this person nonetheless completes
the application, then the attestations and application are invalid.
Table 2
Attestations
I attest that the owner of the applicable facility has site control of the real property on
which the facility will be installed and placed in service through ownership of the real
property, an executed lease for the real property, or a site access agreement or similar
agreement between the real property owner and the applicant.
For an applicable facility on lands under 25 U.S.C. 3501(2)(A)-(C) (Indian Land), I attest
that I have obtained the applicable approval of the Tribal government or Alaska Native
Corporation landowner. For an applicable facility not on Indian Land, complete this
attestation to attest that the facility is not on Indian Land.
I attest that the applicable facility has obtained all applicable federal, state, tribal, and
local non-ministerial permits for the facility, or that the facility is not required to obtain
such permits.
6

I attest that when performing the activities that support this application, I was, or will be,

6
Non-ministerial permits are permits in which one or more officials or agencies consider various factors
and exercise some discretion in deciding whether to issue or deny permits. This does not include
ministerial permits based upon a determination that the request complies with established standards such
as electrical or building permits. Non-ministerial permits typically come with conditions and usually
require public notice or hearings. Examples of non-ministerial permits include local planning board
authorization, conditional use permits, variances, and special orders.

22

in compliance with all relevant federal, state, and local laws, including consumer
protection provisions, and safety obligations, and that the applicant did not and will not
engage in any unfair or deceptive acts or practices.
I attest that the applicable facility is sized, or that customer/offtaker subscriptions will be
sized, to meet the customer’s energy needs, considering historical customer load and/or
reasonable future load projections, and is in accordance with applicable state and local
requirements.
I attest that any end-use customer(s)/offtaker(s) of the applicable facility have and/or will
receive consumer disclosures informing them of their legal rights and protections prior to
executing a contract to subscribe or purchase power from the facility or lease a facility.
I attest that the applicable facility has not been placed in service at the time of this
submission and will not be placed in service prior to being awarded an allocation of
Capacity Limitation.
I declare that I am authorized to legally bind [the applicant]. Under penalties of perjury, I
declare that I have examined this submission, including any accompanying documents,
and, to the best of my knowledge and belief, all of the facts contained herein are true,
correct, and complete. I authorize the Internal Revenue Service and its contractors and
reviewers (including the Department of Energy) to verify the information provided in this
submission. Such verification may include, but is not limited to, conducting independent
research via public maps, the internet, publicly available sources, and other sources.

.08 Ownership Criteria documentation and attestation. In addition to the information,
documentation, and attestations required above, any applicant purporting to meet the
ASC for Ownership Criteria, as described under § 1.48E(h)-1(h)(2), must submit with
their application the documentation specified below to demonstrate that they meet the
Ownership Criteria.
(1) Tribal Enterprise. An applicant claiming to be a Tribal Enterprise, as described
under § 1.48E(h)-1(h)(2)(iii), must provide proof of inclusion of its Indian Tribal
government (Tribal government) owner on the current list of Tribal entities recognized

23

and eligible for funding and services by the Bureau of Indian Affairs (BIA).
(2) Alaska Native Corporation. An applicant claiming to be an Alaska Native
Corporation (ANC), as described under §1.48E(h)-1(h)(2)(iv), must provide a copy of
the relevant portions of the ANC’s articles of incorporation and bylaws demonstrating
that it is an ANC pursuant to 43 U.S.C. 1602(m) (and any relevant amendments),
including the first page with the title of the document and, if applicable, the signature
pages.
(3) Native Hawaiian Organization. An applicant claiming to be a Native Hawaiian
Organization (NHO), as described under §1.48E(h)-1(h)(2)(v), must provide
documentation that denotes that an entity is a NHO under 13 CFR 124.3. This may
include their articles of incorporation, bylaws, or other documentation that showcases a
designation of NHO such as a Small Business Administration certification.
(4) Renewable Energy Cooperative. An applicant that claims to be a Renewable
Energy Cooperative, as described under § 1.48E(h)-1(h)(2)(vi), must provide a copy of
its articles of incorporation and bylaws. The applicant must highlight the relevant
language in these documents that demonstrates the entity meets either the
consumer/purchasing cooperative requirements under § 1.48E(h)-1(h)(2)(vi)(A) or is a
worker cooperative controlled by its worker-members with each member having an
equal voting right as described under § 1.48E(h)-1(h)(2)(vi)(B).
(5) Qualified tax-exempt entity. An applicant claiming to be a qualified tax-exempt
entity described in § 1.48E(h)-1(h)(2)(vii) must provide documentation supporting its
claim as described below.
(a) An applicant claiming to be described in § 501(c)(3), § 501(c)(12), or § 501(d)

24

must provide the following:
(i) If its exempt status is recognized by the IRS at the time of application
submission, proof of listing in IRS Pub. 78, Cumulative List of Organizations Described
in § 170(c) (see the “Tax Exempt Organization Search” page on the IRS website), or in
the Exempt Organizations Business Master File Extract (also available on the IRS
website), such as a screenshot within the last 30 days, or, if issued within the last 12
months, a copy of its IRS determination letter or a letter from the IRS affirming its
exempt status. See Pub. 4573, Group Exemptions, for information on group
exemptions and returns.
(ii) If its exempt status has never been recognized by the IRS, a copy of its
annual information return or notice under § 6033 filed within the last two years (if it has
so filed). Section 501(c)(3) and 501(c)(12) organizations file a Form 990-series return
or notice such as Form 990, Return of Organization Exempt from Tax. Section 501(d)
organizations file Form 1065, U.S. Return of Partnership Income.
(iii) If an applicant’s exempt status has never been recognized by the IRS and
it has not filed an annual information return or notice within the last two years, the
applicant must provide other documentation demonstrating that it is described in
§ 501(c)(3), § 501(c)(12), or § 501(d) (such as its governing documents) and
demonstrating that it is currently excepted from, or otherwise in compliance with, its
exemption application requirements and information return filing requirements, unless it
is a church or a convention or association of churches described in § 170(b)(1)(A)(i), in
which case it may submit the following attestation, uploaded by the applicant in the
Portal, signed by a person authorized to bind the entity: “Solely for purposes of the

25

§ 48E(h) credit, I certify that [insert applicant name] is a church or a convention or
association of churches described in § 170(b)(1)(A)(i). I further certify that I am an
officer of the Entity and that I am duly authorized to sign this statement on behalf of the
Entity.”
(iv) An applicant described in § 501(c)(12) must also demonstrate that it is a
corporation that operates on a cooperative basis and explain, in a statement uploaded
by the applicant in the Portal, the extent to which it is engaged in furnishing electric
energy to persons in rural areas.
(b) An applicant claiming to be a State, the District of Columbia, a Tribal
government (as defined in § 30D(g)(9)
7
), a political subdivision of any of the foregoing,
8

or an agency or instrumentality of any of the foregoing,
9
must provide the following:
(i) A private letter ruling issued by the IRS ruling on its status, if any, or
(ii) An attestation signed under penalties of perjury, by a person authorized to
bind the applicant, certifying that, “to the best of the person’s knowledge and belief, that
the entity is a State, the District of Columbia, a Tribal government, a political subdivision
of any of the foregoing, or an agency or instrumentality of any of the foregoing, and
acknowledging that this representation is not for the purpose of examination or
inspection within the meaning of IRC § 7605(b).” The attestation must be uploaded as
part of the application in the Portal by the applicant. In addition to the acknowledgment

7
For a general discussion of Tribal governments and their subdivisions, see section 5.12 of Rev. Proc.
2024-1, 2024-1 IRB 1, and § 7871.
8
For a general discussion of political subdivisions of States, see Rev. Rul. 77-164, 1977-1 C.B. 20, Rev.
Rul. 78-276, 1978-2 C.B. 256, and Rev. Rul. 83-131, 1983-2 C.B. 184.
9
For a general discussion of agencies and instrumentalities of governments, see Rev. Rul. 57-128, 1957-
1 C.B. 311, Rose v. Long Island Railroad Pension Plan, 828 F.2d 910, 918 (2d Cir. 1987), cert. denied,
485 U.S. 936 (1988), and Bernini v. Federal Reserve Bank of St. Louis, Eighth District, 420 F. Supp. 2d
1021 (E.D. Mo. 2005).

26

described above, the attestation must include the following statement: “Solely for
purposes of the § 48E(h)credit, the applicant qualifies as a [insert the entity type as
described above in this section].”
(iii) In the case of an applicant claiming to be a Tribal government, a subdivision
of a Tribal government, or an agency or instrumentality of any of the foregoing, proof
that the Tribe is on the current list of Tribal entities recognized and eligible for funding
and services published by the BIA, available on the BIA website.
(6) Qualified Renewable Energy Company. Applicants claiming to be a qualified
renewable energy company (QREC), as described in § 1.48E(h)-1(h)(2)(vii), must
provide each of the below requirements in a single package upload in the Portal as ASC
documentation.
(a) Demonstration of Business Purpose. The applicant must submit relevant
governing documentation dated at least two years prior to application submission
containing and highlighting language which confirms the claimed business purpose of
the applicant to serve low-income communities and provide pathways for the adoption
of clean energy by low-income households, as required under § 1.48E(h)-1(h)(2)(vii).
(b) At least 51 percent ownership requirement. The applicant must provide a list
of all individuals with an equity interest in the entity and specify for each individual the
percentage of the individual’s ownership interest in the applicant entity and provide a
diagram and description of the ownership structure to demonstrate that the applicant
entity meets the at least 51 percent ownership requirements under § 1.48E(h)-
1(h)(2)(vii)(B).
(c) Installation, operation, or services requirement. To demonstrate the applicant

27

meets the requirements of § 1.48E(h)-1(h)(2)(vii)(C), the applicant must provide: (1)
documentation indicating the applicant entity has been in existence and operating for at
least two years; and (2) an executed (by each party) contract including the applicant, in
its entirety (including any amendments, appendices, consumer disclosures, and
schedules, and dated at least two years prior to the date of application to this Program),
to install, operate, or provide services to a clean energy facility.
(d) Employment and gross receipts. The applicant must provide a summary
document that demonstrates it meets the employment and gross receipts requirements
under § 1.48E(h)-1(h)(2)(vii)(D). To demonstrate this, the applicant entity must provide
the following documentation:
(i) A list of all current full time and full-time equivalent employees of the
applicant entity;
(ii) A copy of a federal tax filing for the previous two tax years listing the
applicant entity’s gross receipts; and
(iii) Either a statement providing that the applicant does not have any affiliates
or, if the applicant has affiliates, a summary list of each affiliate entity of the applicant, a
description of how affiliation was determined, a list of all current employees of affiliates,
indicating the number of full-time and full-time equivalent employees, as provided in §
1.48E(h)-1(h)(2)(vii)(D), and a list of affiliate entity gross receipts for each affiliate entity
from the previous taxable year.
(7) Qualifying entity in a partnership. If an applicant does not itself meet the
Ownership Criteria described in § 1.48E(h)-1(h)(2), but the applicant is an entity treated
as a partnership for federal income tax purposes, and an entity described in § 1.48E(h)-

28

1(h)(2)(i)(A)-(E) or (h)(2)(iii)-(vi) and section 7.07(1)-(4) of this revenue procedure owns
at least a one percent interest (either directly or indirectly) in each material item of
partnership income, gain, loss, deduction, and credit and is a managing member or
general partner (or similar title) under State law of the partnership (or directly owns 100
percent of the equity interests in the managing member or general partner) at all times
during the existence of the partnership, the applicable facility owned by the applicant will
be deemed to meet the Ownership Criteria. In addition to providing the documentation
described in section 7.08(1)-(4) of this revenue procedure with respect to the relevant
partner meeting the requirements of § 1.48E(h)-1(h)(2)(iii)-(vi) (that is, the partner which
the applicant is claiming meets the Ownership Criteria), the applicant must also submit
documentation to demonstrate that the requirements described in § 1.48E(h)-
1(h)(2)(ii)(B) are satisfied if the applicant is claiming to meet the Ownership Criteria
based on this provision.
(8) Qualifying tax-exempt entity as partner qualifying partnership involving low-
income housing credit. An applicant must provide documentation described in section
7.08(1)-(4) of this revenue procedure with respect to the relevant partner meeting the
requirements of § 1.48E(h)-1(h)(2)(iii)-(vi) (that is, the partner which the applicant is
claiming meets the Ownership Criteria), and the § 42 partnership agreement listing the
relevant partner which the applicant is claiming meets the Ownership Criteria.
.09 Geographic Criteria attestation. If the applicant claims that it meets the ASC for
Geographic Criteria described in § 1.48E(h)-1(h)(3) with respect to Categories 1, 3, or 4,
the applicant attests that the applicable facility will be located in a Persistent Poverty
County (PPC) or in a census tract that is designated as disadvantaged in the Climate

29

and Economic Justice Screening Tool (CEJST) as defined in § 1.48E(h)-1(h)(3).
10

SECTION 8. REVIEW AND SELECTION PROCESS
.01 In general. The IRS will decide whether to award an applicant an amount of
Capacity Limitation with respect to a facility based on the recommendation of reviewers.
.02 Order of application review and recommendation for allocation.
(1) Initial 30-day application period. In accordance with § 1.48E(h)-1(j)(4)(ii), when
the application period opens, there will be a 30-day period during which applications will
initially be accepted for each facility category. All applications submitted within the first
30 days will be treated as submitted on the same date and at the same time. The initial
30-day period will begin on the opening day of the application period described in
section 5.04 and end at 11:59 pm on the 30th day after the opening day of the
application period. The opening day is included in calculating the 30-day period. Refer
to section 8.02(2) of this revenue procedure for information regarding the randomization
process for applications submitted during the first 30 days.
(2) Randomization process for applications submitted during the 30-day period.
All applications submitted during the 30-day period will be randomized within their
respective categories or Category 1 sub-reservation to determine the review order. The
randomization process will determine the order of application review and consideration
for an allocation of Capacity Limitation if the category or Category 1 sub-reservation is
oversubscribed. The randomization process is conducted prior to application review.
Regardless of an application’s position in the review order, a facility will not receive an
allocation of Capacity Limitation if the facility and the application with respect to that

10
Maps that capture applicable census tracts are linked on the Program homepage.

30

facility do not meet the requirements of the final regulations and this revenue procedure.
(3) Applications submitted after the initial 30-day period. Following the 30-day
period, applications will continue to be accepted until the close of the application period
described in section 5.04 of this revenue procedure. Applications submitted after the
initial 30-day period will be held for review and consideration for an allocation of
Capacity Limitation after the applications in the same category or Category 1 sub-
reservation which were submitted during the initial 30-day period. Review of such
applications will occur only if sufficient Capacity Limitation remains to be allocated in a
given category or Category 1 sub-reservation, and in conjunction with the redistribution
provisions described in section 4.05 of the revenue procedure. See section 8.03 of this
revenue procedure for information regarding the processing of ASC applications
submitted during and after the initial 30-day period.
(4) Close of Program year. The Program year will close each year no later than
December 31 at 11:59 PM EST. At the end of a Program year, applications submitted
but not awarded an allocation will be withdrawn.
.03 Processing Additional Selection Criteria applications.
(1) In general. As provided under § 1.48E(h)-1(h)(1) and section 4.04 of the
revenue procedure, 50 percent of the Capacity Limitation in each facility category will be
reserved for applicable facilities meeting the Ownership Criteria described in § 1.48E(h)-
1(h)(2) and the Geographic Criteria described in § 1.48E(h)-1(h)(3)
(2) Prioritization of Additional Selection Criteria applications submitted during the
initial 30-day period. For applications submitted during the initial 30-day period
(described in section 8.02 of the revenue procedure), applications purporting to meet

31

one or more ASC are included in the randomization process (described in section
8.02(2) of this revenue procedure) with non-ASC applications for that category or
Category 1 sub-reservation. However, applications purporting to meet one or more
ASC, and which are submitted during the initial 30-day period, will be prioritized for an
allocation over non-ASC applications within the same category or Category 1 sub-
reservation. Allocations of Capacity Limitation for facilities meeting one or more of the
ASC will be made from the 50 percent ASC reservation for such facilities. If during the
initial 30-day period, an ASC reservation for a category or Category 1 sub-reservation is
oversubscribed with ASC applications, Capacity Limitation from the applicable category
or sub-reservation may be reallocated to prioritize review and consideration of ASC
applications. . Applications purporting to meet two ASC qualifications (an Ownership
Criteria and a Geographic Criteria), and that were submitted within the initial 30-day
period, will be prioritized for review over applications purporting to have one ASC
qualification through a base adder on top of the randomization result. Applications
purporting to have one ASC qualification will be prioritized for review ahead of
applications submitted without any ASC qualifications through a base adder on top of
the randomization result. ASC qualifications may be removed during the review
process if unsupported by the application, in which case the application would have the
applicable ASC adder removed and the application would be reordered to the original
randomization position prior to the addition of the base adder(s).
(3) Additional Selection Criteria applications submitted after the initial 30-day
period. If after the initial 30-day period (described in section 8.02(3) of this revenue
procedure) an ASC reservation for a category or Category 1 sub-reservation is

32

undersubscribed, such ASC reservation of 50 percent is maintained. However, as
described in § 1.48E(h)-1(g)(3) and section 4.05 of this revenue procedure, Capacity
Limitation may be redistributed to oversubscribed categories and sub-reservations
within a Program year. ASC applications submitted after the initial 30-day period will be
reviewed and considered for an allocation from the given ASC reservation until all the
Capacity Limitation for that ASC reservation has been allocated or Capacity Limitation
from the ASC reservation has been reallocated. If the ASC reservation is exhausted,
the ASC applications submitted after the close of the initial 30-day period are not
prioritized for an allocation from the overall Capacity Limitation reservation for the
category or Category 1 sub-reservation. Instead, such ASC applications are combined
with the general review queue for post-initial 30-day period applications in a given
Category or Category 1 sub-reservation. Provided there is still capacity remaining to be
allocated in the given Category or Category 1 sub-reservation, these post-initial 30-day
period ASC applications are reviewed and considered for an allocation in the order in
which they were received, along with the other non-ASC applications submitted after the
initial 30-day period.
.04 Cure period for application defects.
(1) In general. If the application reviewer identifies a defect or is unable to confirm
application details, such as missing or incorrect information or documentation, the
applicant will be contacted by the application reviewer in the Portal. The reviewer will
request that the applicant submit additional information or documentation to correct or
complete the application through the Portal. If the review team determines the defect is
not able to be cured, then the review team will recommend the application for rejection.

33

(2) Timing for applicant response. An applicant that is contacted by a reviewer to
submit additional information or documentation or provide corrected information will
have 12 business days (12 business day cure period) to respond and provide such
requested information or documentation.
(3) Consequences for failure to respond or provide information. If an applicant fails
to respond and provide the requested information or documentation within the 12
business day cure period, review will cease, and the application will be processed with
the information previously supplied, which may result in a withdrawal or
recommendation of rejection. The applicant may create and submit a new application
for review if the facility remains eligible.
SECTION 9. NOTIFICATION OF ALLOCATION DECISION
.01 In general. The IRS will send final decision letters through the Portal to inform
applicants of the outcome of the application process. For any applicant that receives an
award of Capacity Limitation, the letter will state the amount of the allocated Capacity
Limitation.
.02 Allocation amount. The Capacity Limitation allocated to an applicable facility will
be determined based on the nameplate capacity of the facility as stated in the
application. The Capacity Limitation allocation will be provided in DC. For facility types
with a nameplate capacity measured in AC, AC will be treated as equivalent to DC for
purposes of determining the amount of a Capacity Limitation allocation.
.03 Effect of an allocation. A Capacity Limitation allocation or a notification that an
applicable facility has met the eligibility requirements under the Program at the time the
facility is placed in service is not a final determination that property is eligible for an

34

increased credit under § 48E(h). The IRS may, upon examination, determine that
property does not qualify for the increased credit.
SECTION 10. PLACED IN SERVICE
.01 In general. To satisfy the requirements of § 1.48E(h)-1(k), for any facility that
receives an allocation of Capacity Limitation, the owner of the facility must report
through the Portal the date the facility was placed in service and provide documentation
and make attestations as required under section 10.02 of this revenue procedure.
.02 Documentation and attestation requirements. To satisfy the requirements of
§ 1.48E(h)-1(k), the owner must provide the following through the Portal:
(1) A Permission to Operate (PTO) letter (or commissioning report for off-grid
facilities) confirming the location of the facility being placed in service.
(2) A Final, Professional Engineer (PE) stamped (if required by applicable state or
local law) as-built design plan, PTO letter with nameplate capacity listed, or other
documentation from an unrelated party verifying as-built nameplate capacity. If a PE
stamped as-built design plan is not mandated by local jurisdiction, then either a signed
statement from the facility owner confirming the final facility size or an upload of a
single-line diagram accurately describing the final build is required.
(3) For Category 3 Facilities, a final Benefits Sharing Statement as described in
§ 1.48E(h)-1(e)(6) demonstrating that the financial benefits requirements will be met
based on the expected annual energy produced by the as-built facility at placed in
service. The final statement should clarify differences, if any, from the draft benefits
statement provided during the application process. A template benefits sharing
statement is linked on the Program homepage.

35

(4) For Category 4 Facilities, a final Demonstration of Financial Benefits statement
as defined in § 1.48E(h)-1(f)(3)(vi)) demonstrating that the financial benefits
requirements will be met based on the expected annual energy produced by the as-built
facility at placed in service and during the recapture period under § 48E(h)(5) and §
1.48E(h)-1(n). The final statement should clarify differences, if any, from the draft
Demonstration of Financial Benefits statement provided during the application process.
An example Demonstration of Financial Benefits statement is linked on the Program
homepage. The taxpayer must include with the Demonstration of Financial Benefits
statement documentation described under § 1.48E(h)-1(f)(3)(vi) to demonstrate the
facility is enrolled in a utility tariff, program, or other arrangement used to distribute
financial benefits in the form of a bill credit discount rate to Qualifying Households.
(5) An attestation confirming that a disqualification event under § 1.48E(h)-
1(m)(1) through (5) has not occurred.
(6) An attestation stating that the person submitting the information and
documentation at placed in service is authorized to legally bind the taxpayer that owns
the applicable facility, and that, under penalties of perjury, they have examined the
submission, including any accompanying documents, and that, to the best of their
knowledge and belief, all of the facts contained therein are true, correct, and complete.

SECTION 11. CLAIMING THE ENERGY PERCENTAGE INCREASE
.01 In general. After the facility is placed in service, and the owner submits the
additional documentation and attestations described in § 1.48E(h)-1(k) and section 10
of this revenue procedure, the owner is notified that it (or the applicable partners or
shareholders in the case of a partnership or an S corporation) may claim the energy

36

percentage increase on Form 3468, Investment Credit (or successor form) or Form
3800, General Business Credit (or successor form), or, if eligible, make an elective
payment election under § 6417, or, if eligible, make a transfer election under § 6418.
.02 Reduction in Increased Energy Percentage. In cases where the applicable
facility’s nameplate capacity is larger than the allocated capacity when placed in service
(but still below the maximum net output of 5 MW AC), the 10 percentage or 20
percentage point increase will be reduced by a reduction factor which is calculated by
the amount of Capacity Limitation allocated (kW) divided by the total nameplate
capacity installed (kW) at the time the owner of the facility claims the energy percentage
increase under § 48E(h). See § 48E(h)(1)(B).
SECTION 12. ALLOCATION TRANSFERS
.01 In general. Except as otherwise provided in this section, a Capacity Limitation
allocation award applies only to the taxpayer who applied for and received an allocation
award for the facility the taxpayer owns. If the original applicant and allocation awardee
transfers to another taxpayer ownership of the applicable facility to which the allocation
of Capacity Limitation was made, the parties must complete a transfer request in the
Portal for the allocation to be transferred to the successor owner. Written instructions for
the allocation transfer request process are publicly available at
https://www.irs.gov/credits-deductions/low-income-communities-bonus-credit. This
website can also be accessed using irs.gov/licBonusCredit. Allocations cannot be
transferred from one facility to another facility. Additionally, applicants may only request
transfers from one regarded entity to another regarded entity and may not request
transfers to or from disregarded entities. The IRS intends to provide future guidance

37

regarding unincorporated organizations that elect to be excluded from the application of
subchapter K of chapter 1.
.02 Additional Selection Criteria. Applicants who received an allocation based on the
ASC should refer to § 1.48E(h)-1(m)(5) regarding potential disqualification if the original
applicant does not retain the requisite interest described in § 1.48E(h)-1(m)(5) in an
entity treated as a partnership for federal income tax purposes that owns the facility.
SECTION 13. APPLICABILITY AND EFFECTIVE DATE OF THIS REVENUE
PROCEDURE
The guidance in this revenue procedure is effective on January 8, 2025 and applies
to Program year 2025 and subsequent years.
SECTION 14. PAPERWORK REDUCTION ACT
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 - 3520) (PRA) requires
that a Federal agency obtain the approval of the Office of Management and Budget
(OMB) before collecting information from the public, whether such collection of
information is mandatory, voluntary, or required to obtain or retain a benefit. A Federal
agency may not conduct or sponsor, and a person is not required to respond to, a
collection of information unless the collection of information displays a valid control
number.
Sections 5, 7, and 10 of this revenue procedure mention reporting and
recordkeeping requirements that are necessary to ensure that the facility meets the
criteria for the tax credit under § 48E(h). In accordance with the Paperwork Reduction
Act (44 U.S.C. 3507), these collections of information are included within the associated
regulation and have been submitted to the Office of Management and Budget under

38

OMB Control Number 1545-2327 under PRA procedures 5 CFR 1320.11.
SECTION 15. DRAFTING INFORMATION
The principal author of this revenue procedure is the Office of Associate Chief
Counsel (Passthroughs & Special Industries). However, other personnel from the
Treasury Department and the IRS participated in its development. For further
information regarding this revenue procedure, call the energy security guidance contact
number at (202) 317-5254 (not a toll-free call).